Microsoft's acquisition of Nokia cleared in India

Microsoft's acquisition of Nokia has been cleared in India, one of many countries in which it has applied for clearance of the deal.

Noting that Nokia is primarily in the business of mobile handsets in India, a business that Microsoft is not active in, the Competition Commission of India has ruled that the combination of the two companies will not likely have an "appreciable adverse effect" on competition in India.

"There exists a vertical relationship between Microsoft and Nokia, as Microsofts Windows Phone OS is used in the Nokia Lumia range of smartphones," the commission wrote in its order. However, the relation was found to be "relatively insignificant" as the operating system has a small share of the market and Nokia already faces competition from other players.

Nokia had a 5 percent share of the Indian smartphone market to Samsung's 26 percent share in the second quarter, according to research firm IDC.

Microsoft said last month it plans to acquire Nokia's Devices & Services business, which includes the smartphone and mobile phones businesses, for over US$7 billion.

The Redmond, Washington, software company said it would submit the proposed acquisition for approval in the E.U., U.S., China, India, Brazil, Russia, Canada and other countries.

The CCI said that Microsoft had claimed that the proposed transaction would assist the company and its partners in developing a "competitive eco-system" to that of Google and Apple, and provide more consumer choice.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

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